debt consolidation

[det kuhn-sol-i-dey-shuhn]

noun

Finance.

1. the combining of several smaller loans into a single new loan in order to obtain better terms, as a lower interest rate.

Word History and Origins

Origin of debt consolidation¹

First recorded in 1925–30

Example Sentences

“We find a substantial increase in bankruptcy rates, debt collections, debt consolidation loans, and auto loan delinquencies” in those states, they wrote, consonant with an increase in excessive debt among players.

From Los Angeles Times

If you can’t find a lower APR rate with a balance transfer, look for a debt consolidation loan through a lender like SoFi.

From Slate

With a debt consolidation loan, you’ll only owe one lender instead of multiple.

From Slate

Her multibillion-dollar debt consolidation company is cruelly named Redemption Services.

From Salon

Fixed-rate debt consolidation loans are available to borrowers across the credit spectrum at banks, credit unions and online lenders.

From Seattle Times